{"id":72478,"date":"2026-04-20T15:19:42","date_gmt":"2026-04-20T15:19:42","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2026\/04\/20\/australia-signals-greater-defense-investment-but-is-urgency-still-lacking\/"},"modified":"2026-08-08T01:34:59","modified_gmt":"2026-08-08T01:34:59","slug":"australia-signals-greater-defense-investment-but-is-urgency-still-lacking","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/asia-pacific\/2026\/04\/20\/australia-signals-greater-defense-investment-but-is-urgency-still-lacking\/","title":{"rendered":"Australia signals greater defense investment, but is urgency still lacking?"},"content":{"rendered":"\n

KUALA LUMPUR, Malaysia \u2014 Australia\u2019s revised National Defence Strategy, released last week<\/a>, promises increased defense spending and greater self-reliance, but no dramatic change in approach commensurate with a changing security situation, according to analysts.<\/p>\n\n\n\n

Malcolm Davis, senior analyst at the Australian Strategic Policy Institute (ASPI), told Defense News the NDS has many positives, as does the Integrated Investment Program (IIP) released simultaneously, but the foundational documents lack urgency.<\/p>\n\n\n\n

Given the China threat looming over Taiwan, for example, \u201cI don\u2019t think we have a ten-year warning period anymore. That\u2019s clearly gone, and I suspect we maybe have one or two years to really get ready.\u201d<\/p>\n\n\n\n

Nonetheless, Davis believes the strategy is \u201cbroadly heading in the right direction.\u201d He said the strategy \u201cstrengthens our ability to project power and presence, which is great, and also strengthens resilience, including defense industrial capacity.\u201d<\/p>\n\n\n\n

New equipment<\/h3>\n\n\n\n

The IIP allocated A$425 billion (US$307 billion) from 2026-2036 to accelerate capability improvements. Some 41% of these funds go on maritime capabilities, 22% on enterprise and enabling (e.g. infrastructure and information technology), 17% on land, 14% on air, 5% on cyber and 2% on space.<\/p>\n\n\n\n

However, Davis asked: \u201cI suppose the big takeaway with the IIP, how quickly can it deliver capability?\u201d<\/p>\n\n\n\n

He continued: \u201cAll the things are positive, but I think what we\u2019ll need to do is move faster and acquire capability more quickly, build up resilience and sustainability more rapidly.\u201d<\/p>\n\n\n\n

Little changes materially for the Australian Army. The service receives money for littoral maneuver \u2013 particularly medium and heavy landing craft \u2013 so it can better move new assets like Redback infantry fighting vehicles, M1A2 Abrams tanks, AS9 self-propelled howitzers and Boxer 8×8 vehicles around north of Australia.<\/p>\n\n\n\n

The Royal Australian Navy is the biggest recipient of funds, as the service receives eleven new Mogami-class frigates from Japan and six Hunter-class frigates. It reaffirms interest in six large optionally crewed surface vessels armed with up to 32 missile cells.<\/p>\n\n\n\n

The tiger\u2019s share \u2013 up to A$96 billion \u2013 goes on nuclear-powered attack submarines, representing Australia\u2019s largest ever defense allocation.<\/p>\n\n\n\n

Responding to naysayers questioning the AUKUS submarine program, Minister for Defence Industry Pat Conroy said, \u201cI\u2019ve got complete confidence in the Australian industry\u2019s ability to do the work. I was in the U.K. in February, and I saw the first parts of the reactor modules for our first two submarines being built right before my eyes. So this project is on track.\u201d<\/p>\n\n\n\n

Turning to the Royal Australian Air Force, incoming is a fleet of 20 C-130J-30 Hercules transport aircraft, but the RAAF is going to get rid of its C-27J Spartans because of their cost to sustain.<\/p>\n\n\n\n

F-35A fighters will receive new long-range missiles like the LRASM and JSM, plus Super Hornets and Growlers will undergo upgrades to keep them operational until 2040. Up to A$8.1 billion will go on unmanned aircraft like the MQ-28A Ghost Bat.<\/p>\n\n\n\n

Significantly, the government is committing A$21 billion to A$30 billion over the decade to \u201cdeliver a layered, integrated air and missile defense capability to detect, track, counter, withstand and recover from missile attacks.\u201d<\/p>\n\n\n\n

Belatedly learning lessons from modern conflicts, the IIP stated a medium-range air defense \u201cprogram will commence as a priority from 2026.\u201d Western stocks of interceptors are drained because of current conflicts, so this could represent opportunities for suppliers like South Korea offering local production.<\/p>\n\n\n\n

Funding<\/h3>\n\n\n\n

The NDS laid out how funding would swell to 3% of gross domestic product (GDP) by 2033\/2034. Conroy trumpeted that current defense spending of 2.8% of GDP \u201cputs us ahead of all like-minded countries in the Indo-Pacific. It puts us ahead of almost every NATO country except for the United States, and countries on the frontline against Russia, like Poland.\u201d<\/p>\n\n\n\n

In the latest promises, Canberra promised an additional A$14 billion in spending over the next four years, and an extra A$53 billion over the decade, compared to previous estimates.<\/p>\n\n\n\n

According to these figures, this breaks down to just A$3.5 billion extra annually for the next four years, and an average of A$6.5 billion yearly after that.<\/p>\n\n\n\n

Nonetheless, cumulative defense expenditure over the coming decade is projected to reach A$887 billion, including A$112.1 billion for 2035-2036 alone. The government highlighted a 7.6% annual average growth rate in the defense budget over the coming decade.<\/p>\n\n\n\n

Davis was pleased about the government\u2019s willingness to increase the defense budget, but questioned whether it is sufficient and soon enough. \u201cI suspect, given the rapid deterioration and the strategic outlook, they\u2019ll probably need to boost that even further than what they\u2019re planning.\u201d<\/p>\n\n\n\n

He noted, given events like the Iran war, that \u201cthe strategic environment is deteriorating faster than their financial planning cycles are assuming.\u201d<\/p>\n\n\n\n

Mick Ryan, Senior Fellow for Military Studies in the Lowy Institute, concurred. He wrote, \u201cThe spending increases contained in the National Defence Strategy and its accompanying Integrated Investment Program are relatively modest compared to the scale of the security challenges now faced by Australia.\u201d<\/p>\n\n\n\n

US relations<\/h3>\n\n\n\n

Discussing greater self-reliance, Defence Minister Richard Marles remarked at the document launch: \u201cWe\u2019ll work with all our likeminded partners to better shape our region\u2019s strategic trajectory. We\u2019ll double down on middle-power cooperation. But let\u2019s also be clear: There\u2019s no effective balance of power in the Indo-Pacific absent the continued presence of the United States.\u201d<\/p>\n\n\n\n

Richard Gray, a resident senior fellow at ASPI, also wrote, \u201cWe couldn\u2019t easily replace the U.S. even if we wanted to, and in practical terms it remains an indispensable security partner. It has capabilities that Australia can\u2019t or won\u2019t replace.\u201d<\/p>\n\n\n\n

Davis highlighted that self-reliance is interlinked with the U.S. relationship. \u201cBy investing in greater self-reliance capability, we can burden share with the U.S. to a greater degree, and thus ensure the U.S. remains engaged in the region,\u201d he said. \u201cI think that\u2019s crucial.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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